Market Update December 29, 2017

by Gary Peruzzini

Existing Home Sales shot up 5.6% in November, to a 5.81 million annual rate, their fastest sales pace since 2006. Demand stays strong (44% of homes sold in less than a month), though supply in many areas is tight. November New Home Sales exploded up 17.5% to a 733,000 annual rate, and are now up 26.6% the past year, to their highest rate in ten years. Housing Starts grew 3.3% in November, to a 1.297 million annual rate, up 12.9% for the year.

Builders are upbeat–the latest National Association of Home Builders confidence index is at its highest level since 1999. Donald Trump, the POTUS signed the Tax Cuts & Jobs Act. For homeowners, the capital gains exclusion on home sales, and the mortgage interest deduction on existing mortgages were left unchanged. But the interest deduction on new mortgages is only available up to $750,000 (down from $1 million), and all state and local tax deductions are capped at $10,000.

Related Posts with Thumbnails

Previous post: